The Pension Fund Regulatory and Development Authority (PFRDA) has announced new charges for opening National Pension System (NPS) accounts, both online and offline. These charges apply to NPS (All Citizens and Corporate) as well as NPS-Lite models. The service charges for the NPS-Vatsalya account are the same as those for the NPS-All Citizens model. The new charges have been in effect since January 31, 2025.

Finance Minister Nirmala Sitharaman, in the Union Budget 2025, announced that taxpayers contributing to the NPS Vatsalya account will get an additional tax deduction of INR 50,000 under Section 80CCD (1B). This benefit is similar to the tax deduction available for regular NPS contributions.

NPS Account Opening Charges

A charge of up to Rs 400 is levied for the initial registration of subscribers. A fee of up to 0.50% of the contribution amount will be charged on the initial contribution, with a maximum limit of Rs 25,000. Additionally, all future contributions will also incur charges.

Charges for Non-Financial Transactions

A fee of up to Rs 30 will be charged for non-financial transactions. The persistency charges for the NPS All Citizen Model depend on the annual contribution.

  1. For annual contributions between Rs 1,000 and Rs 2,999, a charge of up to Rs 50 will be levied each year.
  2. For annual contributions between Rs 3,000 and Rs 6,000, a charge of Rs 75 will apply.
  3. For contributions above Rs 6,000, a maximum charge of Rs 100 will be levied.

These charges will be deducted through unit cancellation.

Charges for e-NPS Transactions

For e-NPS transactions, a fee of up to 0.20% of the contribution will be charged, with a maximum limit of Rs 10,000. This charge is collected in advance and applies only to NPS All Citizen and Tier-II accounts.

Charges for Exit/Withdrawal Process

For the exit or withdrawal process, a fee of up to 0.125% of the total amount is applicable, with a maximum limit of Rs 500. This charge is also taken in advance.

D-Remit Contributions

D-Remit contributions refer to depositing money directly into the National Pension System (NPS) from the bank account. Through D-Remit, the Net Asset Value (NAV) of the same day is applied. A trial commission of up to 0.20% of the contribution is levied, with a maximum limit of Rs 10,000.

Persistency Charges

Persistency charges are applied only when a customer remains associated with the Point of Presence (PoP) for more than six months in a financial year.

  • The minimum contribution per transaction is Rs 500.
  • The minimum annual contribution is Rs 1,000.

GST and Taxes

In addition to the charges mentioned, GST and any applicable taxes will be levied separately. These new service charges came into effect on January 31, 2025.